Mercedes-Benz: stock stalls as margin targets provided

(CercleFinance.com) - On Thursday Mercedes-Benz announced that it is aiming to improve its operating margin in the coming years by strengthening its positioning in the premium segment.


At a strategy meeting held on the Côte d'Azur, the German car maker set itself the target of achieving an operating margin of around 14% by the middle of the decade, subject to "favourable" market conditions.

In comparison, last year the company generated a margin of 12.7% within its automotive activities.

In a statement, the group said that its operating margin should be around 12% in "normal" market conditions, around 10% in an "unfavourable" environment and around 8% in "very unfavourable" conditions.

Mercedes-Benz says it expects its luxury car sales to grow by around 60% by 2026, driven by brands such as Maybach and AMG, the electrification of its range and greater product customisation.

Whatever the metrics, the company was far from convincing investors, with Mercedes shares down almost 3% following these announcements, largely underperforming a DAX index that was down about 1.5%.


Copyright (c) 2022 CercleFinance.com. All rights reserved.